Local officials rely on foreign investment to support the services sectors and the economy in Karbala. Investors and the foreign owners of capital are still reluctant to enter the city market.
Investment Authority of Karbala blamed the institutions of the state not to encourage investors. The head of the agency Taef Ali referred that the new investment law emphasizes the facilitation of investment, but procedures established by the institutions of government are an obstacle to move the wheel of the investment.
Ali considered in connection with "Radio Sawa" ministries are hesitating in allocation of land for investment projects, the dilemma for investors pushed them to overlook the investment in Karbala.
The absence of foreign investors is making the country dependent on the implementation of service projects, urban development on local companies and heads of government funds.